Changing Donor Priorities and Strategies
For Agricultural R&D in Developing Countries:
             Evidence From Africa

         David J. Spielman, Fatima Zaidi, and
                   Kathleen Flaherty
     International Food Policy Research Institute
A stylized history of agricultural R&D funding
• The “good old days” – late 1960s to early 1980s

• The “lean years” – mid 1980s to early 2000s
      •   Loss of faith
      •   Loss of patience
      •   Project completion
      •   Regionalization
      •   Competition
      •   Complacency




INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Donor commitments to agricultural development and public
                spending agricultural R&D, Sub-Saharan Africa, 1973-2009
                       8,000                                                                                         25
                                                      DAC countries’ commitments to agriculture
                       7,000
                                                                                                                     20
Constant (2007) US$m




                                                                                                                           Constant (2005) US$m
                       6,000                                          Agricultural R&D spending in
                                                                      Sub-Saharan Africa
                       5,000
                                                                                                                     15

                       4,000

                                                                                                                     10
                       3,000

                       2,000
                                                                                                                     5
                                  Multilateral agencies’ countries’ commitments to agriculture
                       1,000

                          0                                                                                          0
                           1973   1978    1983      1988          1993         1998         2003          2008

                                                    Source: Authors, based on data from OECD (2011) and Beintema and Stads (2011)
A stylized history of agricultural R&D funding
• The “good old days” – late 1960s to early 1980s

• The “lean years” – mid 1980s to early 2000s
      •   Loss of faith
      •   Loss of patience
      •   Project completion
      •   Regionalization
      •   Competition
      •   Complacency

• The “renewal years” – early 2000s to present

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Donor commitments and public spending on agricultural
                              R&D in Sub-Saharan Africa, 1997-2009
                       80                                                                                                  800




                                                                                                                                    Constant (2005) US$m
Constant (2009) US$m




                       70                                                                                                  700
                       60                                                                                                  600
                       50                                                                                                  500
                       40                                                                                                  400
                       30                                                                                                  300
                       20                                                                                                  200
                       10                                                                                                  100
                        0                                                                                                  0
                            1997

                                   1998

                                          1999

                                                 2000

                                                        2001

                                                               2002

                                                                      2003

                                                                              2004

                                                                                     2005

                                                                                             2006

                                                                                                    2007

                                                                                                           2008

                                                                                                                   2009
                            DAC country assistance to agricultural research excluding France (3-year moving average)

                            Multilateral donor assistance to agricultural research (3-year moving average)

                            Public expenditures on agricultural research in Sub-Saharan Africa (3-year moving average)


                                                               Source: Authors, based on data from OECD (2011) and Beintema and Stads (2011)
Renewed commitments to agriculture
• 2000
      • Millennium Development Goals (MDGs)
• 2001
      • New Partnership for Africa’s Development (NEPAD)
• 2003
      • Maputo Declaration
        Comprehensive Africa Agriculture Development Program (CAADP)
• 2006
      • Framework for African Agricultural Productivity (FAAP)



INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
%




                                                                                       12
                                                                                            14
                                                                                                 16
                                                                                                      18




                                                                                  10




                                                              0
                                                                  2
                                                                      4
                                                                          6
                                                                              8
                                                   Angola
                                                     Benin
                                                Botswana
                                             Burkina Faso
                                                  Burundi
                                                      CAR
                                                     Chad
                                                      DRC
                                             Cote d'Ivoire
                                                   Djibouti
                                                  Gambia
                                                    Ghana
                                                   Guinea
                                            Guinea-Bissau
                                                    Kenya
                                                  Lesotho
                                                    Liberia
                                              Madagascar
                                                   Malawi
                                                       Mali
                                             Mozambique
                                                  Namibia
                                                     Niger
                                                   Nigeria
                                                  Senegal
                                               Seychelles
                                                    Sudan
                                                Swaziland
                                                 Tanzania
                                                                                                            budgetary expenditure, selected countries, 2007




                                                      Togo
                                                                                                           Public expenditure on agriculture as a share of total




                                                  Uganda
                                                   Zambia
                                                Zimbabwe
Source: Fan (2009), IFPRI RESAKSS (2011).
New donor landscape (1)
• 2005
      • Bill & Melinda Gates Foundation (BMGF) enters
        agricultural development space




INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Bill and Melinda Gates Foundation funding for agricultural
                           development and agricultural research, 2003-2011
                       2,000
                                            1,822
                       1,800
                       1,600
Number, US$ million




                       1,400
                       1,200                                          1,142

                       1,000
                        800                                                                            642
                        600
                        400          269
                        200                                    152
                                                                                              80
                          0
                               Agricultural development Agricultural development Agricultural R&D in Africa
                                                                 in Africa

                                           Grants (no.)       Grants (US$ million)


            INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE                Source: Authors, based on data from BMGF (2010).
New donor landscape (1)
• 2005
      • Bill & Melinda Gates Foundation (BMGF) enters
        agricultural development space
• 2006
      • BMGF and Rockefeller Foundation fund the Alliance for
        a Green Revolution in Africa (AGRA)
• 2007-09
      • World Bank agricultural productivity programs
        (EAPP, WEAPP)




INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
International commodity prices, major staples,
                                 2005-2011

         0.80


                                                    Maize          Wheat           Rice
         0.60
US$/kg




         0.40



         0.20



         0.00
             Jul-05   Jul-06   Jul-07   Jul-08        Jul-09           Jul-10          Jul-11


                                                 Source: Fan (2011), based on data from FAO (2011)
Renewed donor commitments
• 2008
      • US Global Hunger and Food Security Initiative (GHFSI)

• 2009
      • L’Aquila Summit
            Global Agriculture & Food Security Program (GAFSP)
            US Feed the Future (FTF) Initiative
            Increase in European commitments to agriculture




INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
New priorities and strategies?
• Strengthen the international agricultural research system
      • Reform CGIAR governance and management
      • Increase funding for critical research




INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Donor funding to the CGIAR, 1980-2010

                                                            BMGF
               3,000
                                                          Netherlands

                                                         Switzerland
               2,500
                                                             EC

                                                            Japan
               2,000                      Denmark
US$ millions




                                         Netherlands
                                                             UK
                                         Switzerland
                                             EC           Germany
               1,500
                            Italy          Japan           Canada
                        Switzerland
                            EC
                          Japan             UK
                          UNDP            Germany
               1,000        UK
                          IADB            Canada         World Bank
                         Germany
                         Canada
                                         World Bank
                500      World Bank

                                                            USA
                           USA              USA

                  0
                        1980-1989       1990-1999        2000-2010
                                                                Source: CGIAR (2011)
New priorities and strategies?
• Strengthen the international agricultural research system
      • Reform CGIAR governance and management
      • Increase funding for critical research

• Strengthen regional and sub-regional organizations
      • FARA, ASARECA, CORAF, SADC
      • EAAPP, WEAAPP

• Cultivate private sector investment
      • Crop-science, agri-food industries

• Open the doors for new donors
      • Brazil, India, China?


INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Discussion
• Diversification of donors, priorities, strategies
      • Accompanied by greater donor coordination?

• Greater recognition of need for policy reform?
      • Reallocation of funding from R&D projects to institution building?

• Greater interest in donor funding to private sector?
      • Will donor constituents give support?

• Sufficient recipient country voice in donor programs?
      • NEPAD, CAADP √ ; other donor investments √−

• Sufficient absorptive capacity in recipient countries?
      • Risks of replicating past failures

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Thank you



INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

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Changing Donor Priorities and Strategies for Agricultural R&D in Developing Countries: Evidence From Africa

  • 1. Changing Donor Priorities and Strategies For Agricultural R&D in Developing Countries: Evidence From Africa David J. Spielman, Fatima Zaidi, and Kathleen Flaherty International Food Policy Research Institute
  • 2. A stylized history of agricultural R&D funding • The “good old days” – late 1960s to early 1980s • The “lean years” – mid 1980s to early 2000s • Loss of faith • Loss of patience • Project completion • Regionalization • Competition • Complacency INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  • 3. Donor commitments to agricultural development and public spending agricultural R&D, Sub-Saharan Africa, 1973-2009 8,000 25 DAC countries’ commitments to agriculture 7,000 20 Constant (2007) US$m Constant (2005) US$m 6,000 Agricultural R&D spending in Sub-Saharan Africa 5,000 15 4,000 10 3,000 2,000 5 Multilateral agencies’ countries’ commitments to agriculture 1,000 0 0 1973 1978 1983 1988 1993 1998 2003 2008 Source: Authors, based on data from OECD (2011) and Beintema and Stads (2011)
  • 4. A stylized history of agricultural R&D funding • The “good old days” – late 1960s to early 1980s • The “lean years” – mid 1980s to early 2000s • Loss of faith • Loss of patience • Project completion • Regionalization • Competition • Complacency • The “renewal years” – early 2000s to present INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  • 5. Donor commitments and public spending on agricultural R&D in Sub-Saharan Africa, 1997-2009 80 800 Constant (2005) US$m Constant (2009) US$m 70 700 60 600 50 500 40 400 30 300 20 200 10 100 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 DAC country assistance to agricultural research excluding France (3-year moving average) Multilateral donor assistance to agricultural research (3-year moving average) Public expenditures on agricultural research in Sub-Saharan Africa (3-year moving average) Source: Authors, based on data from OECD (2011) and Beintema and Stads (2011)
  • 6. Renewed commitments to agriculture • 2000 • Millennium Development Goals (MDGs) • 2001 • New Partnership for Africa’s Development (NEPAD) • 2003 • Maputo Declaration  Comprehensive Africa Agriculture Development Program (CAADP) • 2006 • Framework for African Agricultural Productivity (FAAP) INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  • 7. % 12 14 16 18 10 0 2 4 6 8 Angola Benin Botswana Burkina Faso Burundi CAR Chad DRC Cote d'Ivoire Djibouti Gambia Ghana Guinea Guinea-Bissau Kenya Lesotho Liberia Madagascar Malawi Mali Mozambique Namibia Niger Nigeria Senegal Seychelles Sudan Swaziland Tanzania budgetary expenditure, selected countries, 2007 Togo Public expenditure on agriculture as a share of total Uganda Zambia Zimbabwe Source: Fan (2009), IFPRI RESAKSS (2011).
  • 8. New donor landscape (1) • 2005 • Bill & Melinda Gates Foundation (BMGF) enters agricultural development space INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  • 9. Bill and Melinda Gates Foundation funding for agricultural development and agricultural research, 2003-2011 2,000 1,822 1,800 1,600 Number, US$ million 1,400 1,200 1,142 1,000 800 642 600 400 269 200 152 80 0 Agricultural development Agricultural development Agricultural R&D in Africa in Africa Grants (no.) Grants (US$ million) INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Source: Authors, based on data from BMGF (2010).
  • 10. New donor landscape (1) • 2005 • Bill & Melinda Gates Foundation (BMGF) enters agricultural development space • 2006 • BMGF and Rockefeller Foundation fund the Alliance for a Green Revolution in Africa (AGRA) • 2007-09 • World Bank agricultural productivity programs (EAPP, WEAPP) INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  • 11. International commodity prices, major staples, 2005-2011 0.80 Maize Wheat Rice 0.60 US$/kg 0.40 0.20 0.00 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Source: Fan (2011), based on data from FAO (2011)
  • 12. Renewed donor commitments • 2008 • US Global Hunger and Food Security Initiative (GHFSI) • 2009 • L’Aquila Summit  Global Agriculture & Food Security Program (GAFSP)  US Feed the Future (FTF) Initiative  Increase in European commitments to agriculture INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  • 13. New priorities and strategies? • Strengthen the international agricultural research system • Reform CGIAR governance and management • Increase funding for critical research INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  • 14. Donor funding to the CGIAR, 1980-2010 BMGF 3,000 Netherlands Switzerland 2,500 EC Japan 2,000 Denmark US$ millions Netherlands UK Switzerland EC Germany 1,500 Italy Japan Canada Switzerland EC Japan UK UNDP Germany 1,000 UK IADB Canada World Bank Germany Canada World Bank 500 World Bank USA USA USA 0 1980-1989 1990-1999 2000-2010 Source: CGIAR (2011)
  • 15. New priorities and strategies? • Strengthen the international agricultural research system • Reform CGIAR governance and management • Increase funding for critical research • Strengthen regional and sub-regional organizations • FARA, ASARECA, CORAF, SADC • EAAPP, WEAAPP • Cultivate private sector investment • Crop-science, agri-food industries • Open the doors for new donors • Brazil, India, China? INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  • 16. Discussion • Diversification of donors, priorities, strategies • Accompanied by greater donor coordination? • Greater recognition of need for policy reform? • Reallocation of funding from R&D projects to institution building? • Greater interest in donor funding to private sector? • Will donor constituents give support? • Sufficient recipient country voice in donor programs? • NEPAD, CAADP √ ; other donor investments √− • Sufficient absorptive capacity in recipient countries? • Risks of replicating past failures INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  • 17. Thank you INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE